Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
March 10, 2003
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, March 10, 2003 at the hour of 7:00 o’clock p.m. with President Gershman presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim (teleconference), Gershman, Christensen, Kerian, Kreun - 7; absent: none.
President Gershman announced that Mayor Brown was in Washington, D.C. at the National League of Cities Congressional City Conference and is meeting with the ND Congressional delegation and House and Senate Appropriations Committees, and is on the line tonight. President Gershman stated that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.
President Gershman thanked the visitors to Grand Forks this past week and wish the UND hockey and basketball teams good luck in the playoffs coming up.
ADOPT RESOLUTION SUPPORTING SITING OF AQUATICS
CENTER ON CITY PROPERTY NORTH OF THE ALERUS
CENTER AND COMMITMENT OF UP TO $2 MILLION FOR
CONSTRUCTION OF THE AQUATICS CENTER
The staff report from Mayor Brown relating to resolution supporting the siting of the Grand Forks Park District Aquatics Center on City property north of the Alerus Center, and the commitment of up to $2 million for the construction of the Aquatics Center, with recommendation: 1) adopt a resolution allowing the Grand Forks Park District to site the Park District Aquatics/Community Center on City property situated north of the Alerus Center and the proposed Canad Hotel. The resolution also outlines the commitment of up to $2 million for the construction of the Aquatics Center. 2) Request City staff in the Mayor's, City Attorney, Finance, Engineering and Planning Departments to prepare the necessary agreements, development plans and financing recommendations to accomplish the City's contribution to the siting, construction and funding of the Park District Aquatics Center. 3) Request City staff to provide timely reports and the necessary budgetary documents to the Mayor and the city council on the progress of the agreements and the construction of the Park District Aquatics Center.
The deputy city auditor read the proposed resolution: (Document No. 8238.1 - Resolution).
President Gershman stated that several individuals wished to address the city council. The following individuals opposed the resolution siting the aquatics center, stating that the City was rushing this item through and to wait for public vote.
Doug DeMars, 2627 South 17th Street
Dennis Cook, 3649 21st Avenue South
Troy Ramage, 2200 Library Circle, owner of Holiday Inn
Tom Bures, 2225 7th Avenue North
Mike Brown, 511 Park Drive
Chris Miller, 3712 Cherry Street
Shurkey Swanke, 1506 South 15th Street
Ross Weiler, 701 North 3rd Street
Council Member Christensen stated that the resolution that was read does not commit money tonight, the resolution makes a commitment on behalf of the City to commit money at a future point, there will be no building of a water park without a vote of the people, there will be issues as to how it is going to be financed, and this resolution provides for the creation of a task force to address the issues that were raised, and the members of the task force will be charged with looking into those issues raised, that he has come to the conclusion that it is better to vote in favor of this resolution only to allow the matter to go forward so that once the package that will be developed by the task force - the size and cost of the project, and a source of funding of any anticipated shortfall, and only then will this matter be placed on the ballot and at that point in time the community will have a right to vote up or down. He stated it is highly possible that the developers may not come, and highly possible that the community could vote for a water park and have water park without a hotel. He stated there seems to be a constituency in this community that seems to feel that a water park should be pursued.
Council Member Glassheim asked if we are committing up to $2 million in the future should the project move forward but not writing a check with a positive vote. Council Member Christensen stated it is his understanding that the task force has 90 days to come back with its recommendations, no money is being spent, just our commitment to fund it.
Council Member Kreun stated we are not giving money to anybody at this time, that if and when this does go through, it would be a part of the construction cost for a water park only, not giving any money to an outside agency from outside the country, and as the mayor indicated this takes a lot of planning, whether water park or hotel or any type of construction project, and in order to continue the planning, find out the scope of the project, find out what the community wants, this is one step in the planning process to accomplish that, and that there are deadlines that have to be met for all the people involved. He stated he disagrees that this is being rushed, that they had meetings that were very public and brought forward back in November, had a non-binding signing agreement in December, the Park District has gone through and brought out a lot of information, that different locations were explored.
Council Member Kerian stated that anybody who is doing this planning understands that the City would be able to participate in a land offer if that is where it would be sited, trying to get some information on the table so that further planning can be done.
Council Member Brooks stated there are other things going on that this impacts, there may be a vote coming down the line but the resolution doesn't say that anything will be built until there is a vote of the people. He stated there are a number of questions and he has met with the hotel people and some questions good and still haven't gotten answers - that he has a goal of economic development and his definition is that the only way the people of Grand Forks were going to get some tax relief and for the city to prosper was if we expanded the tax base, and thinks this project has to go forward and need to make this commitment tonight, that he doesn't know that he will vote for it unless an amendment he will put forward will go through as he needs to put a dollar figure on this.
Council Member Glassheim stated one speaker was negative about the hotel and a different country and that he wanted to say that Grand Forks' connections with Winnipeg is a good idea, and welcome a Winnipeg firm putting a hotel in Grand Forks, and they will be bringing buses, etc. and people from Winnipeg to our city, and the hotel will be an investment and asked for figures of how much the hotel is likely to cost and what kind of property tax would the City receive. Mr. Duquette stated rough estimates are approx. $13 million for the cost of the hotel and about $350,000 to $400,000 in property taxes per year. Council Member Glassheim also stated that the people of Grand Forks voted on the Alerus and at that time the proponents said that it needed a hotel attached to it as it was going to be a convention center as well as an arena, and was planned from the beginning to have a hotel attached to it, and wanted to make it clear that there will be no water park without a vote of the people and no source of funding without approval of the people. President Gershman noted that special assessments will be paid by the hotel.
Council Member Brooks stated that this is the last summer for the Riverside pool, and losing a pool on the north end and they need access to a swimming pool or water facility for those people and that $880,000 is money for the buyout for that pool and to replace it but also filling need of some kind of water facility for residents of the north end.
It was moved by Council Member Kreun to approve the resolution in support of the Community Aquatics Center on South 42nd Street with several changes, that the Grand Forks Park District Aquatics Center be changed to Community Aquatics Center, and to include the contribution of up to $2,000,000 to assist in the construction of the Aquatics Center, and that the provision of City land shall be available for a period of up to two years rather than five and if the construction of the Aquatics Center does not commence in that two year-period the offer of the land and money shall be withdrawn: (Document No. 8239 - Resolution). Council Member Christensen seconded the motion.
Council Member Brooks stated he understands we're not writing a check and are setting up a task force and with his interest in fiscal responsibility and has heard various sizes from $7 million to $23 million, and before starting on this project, should have a business plan stating that it is going to be x million dollars, and moved an amendment to the resolution that the phrase "not to exceed $7 million" be inserted. The motion died for lack of a second.
Upon roll call on the original motion and upon roll call vote, the following voted "aye": Council Members Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 6; voting "nay": Council Member Brooks - 1. President Gershman declared the motion carried and the resolution adopted.
APPROVE FUNDING FOR GRAND FORKS AIR FORCE
BASE RETENTION COMMITTEE
The staff report submitted by City Council President Gershman relating to Grand Forks Air Force Base Retention Committee funding, with recommendation to authorize the expenditure of up to $250,000 per year for the next three years for the retention efforts of the Grand Forks Air Force Base Retention Committee.
It was moved by Council Member Hamerlik that we authorize expenditures of up to $156,000 this year and $250,000 for 2004 and for 2005. Council Member Brooks seconded the motion. (It was noted that $94,000 had been committed for this year). Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. President Gershman declared the motion carried.
The request for budget amendment submitted by the Finance Department to increase expenditure account from Cash Carryover (excess sales tax) to be used for Air Base Retention, bringing total 2003 budget for air base retention to $250,000. It was moved by Council Member Christensen and seconded by Council Member Kerian to approve the budget amendment. Carried 7 votes affirmative.
ADJOURN
It was moved by Council Member Hamerlik and seconded by Council Member Kreun that we adjourn. Carried 7 votes affirmative.
Respectfully submitted,
Saroj Jerath
Deputy City Auditor
Approved:
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Harold A. Gershman, President of City Council